Fix-and-Flip Loan Programs: Maximize Broker Profits with RCN Capital

Although traditional mortgage applications dropped 6.2% this year, investors haven't let up with acquiring properties. They're pursuing distressed sales and off-market transactions—and they require financing that closes as quickly as possible. That's where lending partners like you fit into the picture. Brokers who deal in fix-and-flip transactions are bringing in 35% more per year than those who only offer traditional loans.

At RCN Capital, our programs are designed for brokers from day one: clear terms, quick turnarounds, and a broker-first process that keeps you in charge—not chasing updates or getting ghosted. With 20% loan volume growth anticipated for 2025, we're continuing to invest even more in wholesale partnerships so you can grow your pipeline.

In this guide, we’ll break down how to place, package, and profit from fix-and-flip loans—helping you close quicker, earn more, and start building loyal client relationships.

Why fix-and-flip financing belongs in your product mix

Fix-and-flip deals generally produce larger loan sizes and repeat business from builders and active investors. That translates into more commissions and better referral opportunities for you, so long as you can close fast and package deals effectively. Brokers that offer fix-and-flip loan programs to customers are positioned to win more business as the go-to capital providers for these clients.

Quick snapshot of the Current competitive environment

• Mortgage rates are still higher than pre-2021 standards; 30-year fixed-rate averages are in the mid to high six percent range. That climate keeps a lot of homeowners fixed in lower rate mortgages and restricts resale inventory, thus boosting opportunities for investor-sourced flips.
• RCN Capital reported sustained growth and platform development in recent company releases, indicating heightened wholesale activity and the ability to originate loans with robust capital support. Recent reports mention significant origination milestones and an extensive funding history.
• The leverage potential distinguishes RCN loans from any other funding source. They provide up to 95% of the purchase price and 100% of repair costs, at up to 75% of the ARV. This arrangement allows investors to own high-value properties with little cash investment, maximizing their potential return.

Highlight this information pitch materials to demonstrate to owners and builders how private financing can make be the difference between winning versus losing a deal.

How brokers should think about fix-and-flip loans benefits

When speaking to developers and investor clients, frame the benefits in terms they care about:

• Speed to close - faster closings enable investors to outcompete other offers on off-market properties. RCN Capital makes pre-approval determinations on completed submissions in as little as 24 hours.
• Funding for rehab - loans covering acquisition plus rehab minimize out-of-pocket capital requirements and enhance return on equity.
• Flexible underwriting - emphasis on post-repair value and project feasibility usually means more than conventional credit factors.
• Broker protections and transparent pay - RCN Capital puts broker compensation upfront on commitment documents and settlement statements, which decreases tension at close.

The fix-and-flip loan process brokers need to master

An understandable, reproducible submission process accelerates loan approvals and improves closing rates. Describe the process to customers as a series of milestones so expectations remain in sync:

• Verify sponsor experience, liquidity available, type of property, and underlying project economics.
• Provide a high-level budget and expected ARV.

• Submit the term sheet request with sufficient detail to receive an executable commitment, including preferred draw cadence and plan of exit.
• RCN Capital typically issues fast pre-approvals when the package is complete.

• Place an order for appraisals, contractor bids, and cost estimates to substantiate budgets. Independent inspection thresholds should be expected.

• Initial funding at closing, followed by subsequent draws tied to inspections and milestones.

• Clear exit planning: resale timeline, refinance to permanent financing, or portfolio hold.

Document every step on your client checklist so underwriting gets just what it needs the first time around. A properly packaged submission saves turnaround time and improves deal success.

Packaging winning fix-and-flip submissions

Top brokers consistently include the following to reduce back-and-forth:

• Comprehensive construction budget including line-item contingencies.
• Detailed draw schedule tied to measurable milestones and inspections.
• Licensed general contractor profile with references and examples of similar projects.
• Site control documentation, such as an executed purchase agreement or evidence of title.
• Clear capital stack showing equity, subordinate financing, and other sources.
• Realistic exit strategy with comps and market support for the projected ARV.

Use RCN Capital's white-labeled Loan Management System to deliver a package bearing your brand, which maintains client-facing relationships while making deal review more streamlined.

Pricing, compensation, and commission on fix and flip loans

Compensation models differ according to the level of involvement. RCN Capital provides flexible, open options that usually include:

• Yield spread or points for active origination and rate structuring.
• Flat finder’s fee options for hands-off referrals.
• Clear HUD disclosure so broker fees appear on the settlement statement without surprises.

We’ve designed our fee structure to capture the value created. For instance, transactions involving active construction monitoring or complicated capital structures warrant more compensation than simple, experienced-sponsor flips. Reveal fee alternatives to customers early, then document them in the commitment to prevent miscommunication.

Risk controls to protect borrower outcomes and your reputation

Construction projects carry execution risk. Encourage client behaviors that reduce sponsor and lender risk:

• Keep contingency reserves of at least five to ten percent.
• Use independent inspections for draw approvals.
• Verify contractor track records and prior completions.
• Apply conservative timelines that anticipate permitting or supply chain delays.

These habits shorten disputes, lower expensive extensions, and safeguard broker fees and borrower returns.

Practical tactics to grow fix-and-flip volume in your book

• Niche down: focus on a market niche like single-family infill or small multifamily flips to create repeat business.
• Offer packaged presentations: provide builders and investors with a branded term-sheet template that lays out funding options simply.
• Leverage white-label marketing: use RCN Capital’s customizable assets to co-brand outreach that feels native to your business.
• Train your team: utilize RCN Capital's Amplify modules so the entire origination team shares a common language that minimizes approval cycles.
• Build referral networks: partner with trusted contractors, appraisers, and entitlement specialists who can speed projects and improve underwriting confidence.

These tactics turn occasional flips into repeat business, and a predictable revenue stream.

Taking Action in Today's Market

The fix-and-flip loan market rewards brokers who act decisively while maintaining solid lender relationships. RCN Capital's track record of more than $8.2 billion in originated loans and over 37,000 funded loans indicates the reliability and experience that your clients require.

To get started, complete RCN Capital's broker registration application and schedule an onboarding call with their professional team.